Digital receipts: What are they and why should you make the switch?

August 1, 2025

By Zara Smith, Coram PACEY Writer and Advisor

Receipts are a daily part of spending and running a business – but have you noticed that the world is fast moving away from paper? Thanks to new regulations like Making Tax Digital, digital receipts (or e-receipts) are no longer just a convenient eco-friendly option – they’re fast becoming a necessity for anyone managing finances in the UK.

Digital receipts, also known as e-receipts or electronic receipts, are simply digital versions of the paper receipts you get in shops or online purchases. Instead of receiving a slip of thermal paper, you receive your receipt as an email or text message. These digital copies include all the details you usually find on paper: purchase amounts, dates, and supplier information.

There are several good reasons to consider moving away from paper-receipts.

Environmental impact

Paper receipts come with a heavy environmental cost. The UK alone uses around 11.2 billion paper receipts a year, using more than 10 million trees as well as 50 million gallons of oil and 1 billion gallons of water in the paper production process. What’s worse, most paper receipts aren’t recyclable, clogging up landfills and damaging the environment.

Health concerns

Standard paper receipts are printed on thermal paper, which are often coated in chemicals like BPA and BPS. These chemicals can be absorbed through the skin and have been shown to be harmful; they can reduce sperm count and are linked to breast cancer, hormone disruption and challenges with cognitive development. Thermal paper with a BPA content of 0.02% or more (by weight) was prohibited from use in the UK and EU in 2022, so many manufacturers for receipt paper then switched to BPS. While BPA is now banned in receipts in the UK BPS is still commonly used and has similar concerns.

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Paper is impractical

Physical receipts fade, get lost, or pile up quickly. This can be especially challenging for those who are self-employed or running a business and need them for their financial records or expenses.

Making Tax Digital – a legal requirement

A critical shift is being driven by the UK government’s Making Tax Digital (MTD) initiative. MTD makes it mandatory for self-employed people and businesses to keep digital financial records and submit tax returns using compatible software. This signals the end of the paper trail for accounts and expenses, making digital receipts essential for compliance. Having your receipts in a digital format saves you time, reduces errors, and means your records are always ready for submitting to HMRC.

The Benefits of Digital Receipts

Compliance with MTD rules: Digital receipts automatically fit into the systems required for Making Tax Digital, easing the transition and ensuring you meet HMRC’s requirements.
Easy storage and access: Find, sort, and store receipts with email apps or the cloud – no more bulky folders or lost slips.
Seamless integration: Most digital receipts can be uploaded straight into accounting software, making taxes, invoicing, and expense claims much easier.
More secure: Digital systems are protected by passwords and backups – unlike paper which can be lost or stolen.
Fast and efficient: Digital receipts land in the recipient’s inbox instantly, rather than filling purses, wallets or pockets.
Easier tax calculations: Digital receipts help ensure every cost is logged and eligible expenses aren’t missed, streamlining bookkeeping processes.
Sustainable: Switching to digital helps cut waste, saves trees, and reduces pollution from paper manufacturing.
Convert old receipts: Paper receipts can be photographed or scanned, so even older paperwork can become digital records.

Drawbacks of digital receipts

Marketing emails: Some businesses use the email from e-receipts for promotions and marketing purpose – watch out for consent boxes.
Inbox overload: Receipts may go to the junk or spam folder, so it is important to stay organised.
Software needed: Keeping things digital sometimes means an initial investment in the right accounting tools, especially for businesses needing MTD compliance.

Switching to digital receipts isn’t just about convenience, being green and minimising health risks – it’s about future-proofing business finances. The introduction of Making Tax Digital makes clear that the days of relying on paper are ending. Embracing digital receipts now means smoother record-keeping, easier tax returns, and complete compliance with the new digital expectations.

Ready to get organised, stay compliant, and ditch paper clutter for good? Next time you’re offered a digital receipt, consider making the change – for your business, the planet, and peace of mind when tax returns deadlines approach.

Find out more about Making Tax Digital for Income Tax